As with most of the countries in Western Europe these days, Italy is running out of money to fund their burgeoning entitlement society. James Miller, of the Ludwig von Mises Institute of Canada reports; Tax collections are down while public expenditures have skyrocketed in a vain effort to stabilize the economy.
But the ever-growing appetite of the bloated beast of the state must be sated. So Italian Prime Minister Mario Monti is cracking down on tax evasion. With predictable results: Italy And The Great Tax Revolt. [Source: Zero Hedge]
Bloomberg Businessweek reports on the backlash:
Equitalia (is that Italian for “equal misery for all?”), the state tax-collection agency, has been targeted in a wave of attacks as Italians chafe under stepped-up efforts to recover an estimated 120 billion euros ($153 billion) in lost revenue from evasion. On May 12, a Molotov cocktail exploded outside Equitalia’s Livorno office, one day after a parcel bomb was delivered to the Rome headquarters, site of a December explosion that tore off part of the general manager’s hand.
“I have never seen such a tense atmosphere” said Ballico, who has been employed by Equitalia since 1998 and is now on temporary leave to work for the UGL labor union. “They call us loan sharks, bloodsuckers; my colleagues have to deal with anxiety and stomach aches every day and they are scared…”
…Earlier this month, a 54-year-old small businessman facing financial difficulties and tax debts of around 2,400 euros, took 15 hostages at an Equitalia office near Bergamo for several hours before surrendering to police…
…As part of the crackdown on tax evasion, authorities have targeted owners of luxury cars and boats to stop transgressions by the wealthiest Italians. Still, much of the anger directed at Equitalia is from people with more modest means as the agency is responsible for collecting everything from missed mortgage payments to parking tickets and delinquent school lunch fees. 😯
Italy’s tax burden, as a percentage of gross domestic product, will rise to 45.1 percent this year, up from 42.5 percent in 2011. Yikes!
James Miller’s article continues:
Like a drug addict, the state must be sustained by increasing amounts of revenue to satisfy its craving of paying off voters. It must continually buy legitimacy to hold up the veil which masks its thieving tendencies. As the tax fund dwindles, governments in the West are becoming desperate. Like the producers in Ayn Rand’s uncannily predictive novel Atlas Shrugged, many of the more productive members of society have grown tired of being soaked to pay for political handouts and unending wars of aggression…
…The only difference between a thief and the taxman is the thief recognizes his crime is wrong. The taxman not only feels entitled to the labor of others but routinely pilfers under the pretenses of serving its victims.
The “makers” have clearly had it with the “takers.” Don’t expect the situation in Italy, or elsewhere in Europe, to resolve itself peacefully any time soon.
Related:
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